There has been a huge move towards non-bank originators like New England Home Mortgage. The growth in non-bank lending has been astounding, from just 10 percent of the mortgage origination market in 2010 to half of it today, according to Inside Mortgage Finance.
Its share is dominant in government-insured lending by the Federal Housing Administration (FHA), which was particularly aggressive in holding big banks accountable for any mistakes in loan underwriting. Non-banks are subject to the Dodd-Frank Act, so they are subject to strict underwriting rules.
Upcoming deregulation could create more competition but also grow the mortgage business as a whole.